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Weary but relieved, European Union leaders finally clinched a deal on an unprecedented 1.8 trillion euro ($2.8 trillion Cdn) budget and coronavirus recovery fund early Tuesday, somehow finding unity after four days and nights of fighting and wrangling over money and power in one of their longest summits ever.
If under "clinch" you mean "steal" then yes, they did.
I rest my case here, they better change the motto of NATO/EU to "it always gets worse" lol or so. It seems as if they will borrow the trillions...from who? My guess is borrowing from China under bad terms or to be more specific, this time the less affected countries such as eastern europe will have to pay for the ones affected the most: Italy, Belgium, France you name it.
Weary but relieved, European Union leaders finally clinched a deal on an unprecedented 1.8 trillion euro ($2.8 trillion Cdn) budget and coronavirus recovery fund early Tuesday, somehow finding unity after four days and nights of fighting and wrangling over money and power in one of their longest summits ever.
It seems like around half of it will come in the form of bonds issued de jure by the European Commission but de facto guaranteed by the ECB, and around another half in the form of low-interest loans, also de facto underwritten by the ECB.
So money printing of which about 1/4 with some strings attached.
As usual, the issue is, will those in individual countries who receive and control the money really use it to shore up the economy and make structural changes, or will they dollop out most of it to themselves and their cronies?
Which of those two do you think will be the more prevalent over the next 1-4 years or so?
Well America got away with it, their federal reserve printed trillions of $$$ and we haven't seen demand-pull inflation or whatever...not yet.
From the article it's all about money borrowed from somewhere (where??) that should be paid back till 2058.
If the ECB just prints euros and hands them as a loan then this sounds retarded and only benefits whoever is in charge of the ECB, it's very different from the free lunch the US government sends to their people.
This will totally set the support for anti-EU parties in frugal five on fire. If I were one of them I wouldn't be happy about it either.
Yes retards like Le Pen and Wilders always have something to say for as long as America pays their bills. I'm pretty sure those "nationalists" will never say a word against nato though, who knows why...
edit: Le Pen likes loans from Russian banks for it's not easy for her party I know.
Well America got away with it, their federal reserve printed trillions of $$$ and we haven't seen demand-pull inflation or whatever...not yet.
Global manufacturers are awash in near slave-labor merchandise that increasingly fewer people have space in their dwellings to put anyway.
Based on nothing but gut feeling, I would say that governments/central banks in the countries of early industrialization could "simply" guarantee the payments system for essentials (water, food, housing, electricity, and a few others) while almost everyone stays home for up to 9 months without an acceleration in inflation. Who would be buying non-essential merchandise anyway beyond what's in inventory, already bloated before the pandemic broke out?
Quote:
Originally Posted by euro123
If the ECB just prints euros and hands them as a loan then this sounds retarded and only benefits whoever is in charge of the ECB, it's very different from the free lunch the US government sends to their people.
If the European Council agrees politically, then I don't see much difference between the ECB and the Fed technically, except for the institutional channels through which (tainted) money supply flows.
I do agree that only few will benefit in terms of incremental wealth extracted from a shrinking economic pie overall.
Not saying you're wrong I bet you have better understanding of macroeconomics than me but still overall I think it's a very bad idea. For someone to give such a long term loan till 2058 they should be able to use crystal ball and forecast inflation accurately + the EU economy isn't going anywhere in terms of growth so it's very likely someone will default on their debt even if we don't take into account corruption and misuse of money.
It will be much better if the EC just sends checks to people "american style" while planning a limited budget for the next couple of years with more emphasis on science, education and military/nato independence.
However neither the politicians of different countries nor America will support such planning.
If under "clinch" you mean "steal" then yes, they did.
I rest my case here, they better change the motto of NATO/EU to "it always gets worse" lol or so. It seems as if they will borrow the trillions...from who? My guess is borrowing from China under bad terms or to be more specific, this time the less affected countries such as eastern europe will have to pay for the ones affected the most: Italy, Belgium, France you name it.
Considering it was China that got the world into this mess, the least they could do, is make loans available on favorable terms. And why are we assuming China has that kind of money, anyway? I thought their manufacturing sector had been falling out of favor well before Covid, though I can't recall why, at the moment. But their boom was starting to fizzle.
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